Stockchase Opinions

The Panic-Proof Portfolio (Stockchase Research) Rambus Inc. RMBS-Q TOP PICK Jul 16, 2024

Stockchase Research Editor: Michael O'Reilly

We reiterate this developer of computer chips used in AI development.  It trades at 20x earnings and supports a robust 41% ROE.  Next earnings will be reported on July 29.  We recommend trailing up the stop (from $46) to $53, looking to achieve $79 -- upside potential of 20%.  Yield 0%

(Analysts’ price target is $78.75)
$65.250

Stock price when the opinion was issued

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DON'T BUY
Took a beating because they lost out on a lawsuit. Appealing this but it is a gamble. Has more debt than revenues. In a very competitive marketplace. Lost about $200 million last year. Have a lot of cash.
BUY

High speed chip to chop interface is making a comeback, and RMBS makes money though it took a while.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

This producer of DDR5 semi-conductor chips, increasingly used in AI servers, is a TOP PICK.  It trades at 17x earnings and supports a robust 41% ROE.  Cash reserves are growing, while shares are aggressively bought back and debt is retired.  We recommend setting a stop-loss at $46, looking to achieve $80 -- upside potential over 40%.  Yield 0%

(Analysts’ price target is $80.00)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jul 16/24, Down 18.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with RMBS has triggered its stop at $53.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 12%, when combined with our previous recommendations.